Quote:
Originally Posted by newts
You can return anything at Costco because they have all of their suppliers over the barrel.
You think that Costco takes the hit for any of the returns? Nope...returns just go to a reclamation centre and the supplier in turn usually gets short paid. Ie. If Costco owes a supplier $100K, and they have $5K of returned goods belonging to that supplier, Costco will pay $95K and the supplier will bear the costs of the returned goods. As a supplier, you try and fight it and they delist your product, potentially costing you millions in business.
It's not just the consumer who is acting unethically, it's Costco as well. A six month return policy is ridiculous on some stuff, but it generates more business for them at the suppliers expense.
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in theory, the supplier still benefits from a 95% sell rate. If they didnt distribute via Costco, would they have the same sales volume?
in the end, the consumer ALWAYS pays.